Tasmanian farmers will soon be eligible for grants as part of a $3 million research and development support package intended to promote the state's agriculture sector.
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Farmers interested in the Agricultural Development Fund can apply for grants up to $1 million for projects that support research and development across all areas of the state's agricultural industry.
Tasmanian Farmers and Graziers Association chief executive John McKew said he was pleased the funding would be made available to the agricultural industry.
"If you can get good research and development and extension into our industries, solve some problems, help guide farmers in some of the issues that they're facing, increased productivity increases profitability, that's a great result," he said.
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Mr McKew was not aware of any pending applications for the fund, but said once the grant application process opened he expected submissions would follow suit.
"I'm not aware of anyone directly today, but the fund's not open yet. When it opens, we will certainly be doing our part to make sure people are aware of it and have the opportunity to apply," he said.
Primary Industries and Water Minister Guy Barnett said the funding would be allocated on a case by case basis, with priority given to environmental and sustainable projects that could be carried out within three years.
"Preference will be given to funding for projects that help producers reduce emissions and adapt to and prepare for the impacts of climate change," he said.
Mr Barnett also explained biosecurity, improved productivity and closing the digital skills gap would also be given preference.
Mr McKew said with the agricultural sector experiencing a period of prosperity it was a good time to invest in the future of sustainable farming.
"It's probably an opportunistic time to be investing for the longer term of our industries, and thinking about where we can be investing and making a difference now for sustainability and productivity for the long term when things aren't quite as good as today," he said.
"But look, you know an announcement like this, investing $3 million into agriculture, quite frankly I'll take that announcement any day of the week."
The grants will open July 30 for six weeks and close on September 10.
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